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Corporations and a stock exchange index


Busch

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So I have been for a long time wanting to create a stock market, which wouldn't be very much realistic. However this one would run in a certain way that would benefit everyone involved in it short term, or depending on each company's bylaws.

 

What I have in mind is to create an index which already exists the BAWSAQ index from the GTA 5 lore. This index however will be based out of the total AUM each corporation and company has. 

 

Your business can choose not to be in this stock market however. But as we already know those businesses wouldn't be established as corporations instead as associations.  Since "Every corporation must have at least one type of stock. This rule even applies to S corporations, but they are limited to 100 total shares and only one type of stock. The term “stock is often used interchangeably with “shares” or “equity.” Those who own stock are called “shareholders” or “stockholders.”

 

Anyway moving on... How did I get this idea? I've been playing and reading a lot about the markets with this current recession due to corona virus and i've set up a company long ago in 2018 in this server. Busch Harland. I know we wont be very realistic about the stock market in this server but trust me it will develop a shit ton of RP and things to do for those legal RPers who want to deal with other legal entities within LS. Also undersstanding the real stock market is a pain in the ass and to script one or be botehred to make an index would be a horrible nightmare.

 

How would this stock market work in detail.

The market would label your company with an established index chosed by the BoD of your corporation.

You can choose to start with 100 shares and if you need more, you can add them just by requesting more to be added.

The AUM is assets under managament and that shows how big your company is and if it's worth investing. And also where the investors will get their dividends from.

 

Also you can choose to be public or private... 

 

That's about it.

Edited by Chuck Lee
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This would need script in order to work, you can't just role-play the stock market, because no matter what, you'll role-play it in your advantage. You'll need more than one company to be in it, maybe some state companies(eletricity, gas, etc.) to be part of it. Also, it needs a script based on its sales, so the price and actually go up and down based on their sales, based on the market, on their image, etc. It's a really long road and it needs a lot of work done before it can be functionally, so far what you're doing is basically just some role-play.

 

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Your business can choose not to be in this stock market however

See, businesses need to list for a stock market exchange, meaning there has to be an IPO, so normally no business(besides the state ones, owned by the server itself) should be in the market before the opening. Read about how  DOW was made to see more information about it.

 

 

I find the idea really bad, without a script, you're just asking people to pay money for stocks that are not there. Dividends are supposed to be paid when your business makes some proffit, so you either give it back to the stockholders or invest it. How would you even be able to prove to your investors that you made money? I find the entire thing really fishy and I doubt it'll work withouth a proper script.

 

The script can bring a lot of role-play and it can actually bring a proper stock exchange system which can be beneficial both for investors and business holders too. I'm down to help the staff with a system that can make a market, but otherwise, the entire point of just role-playing this would be cool without the money involved.

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My question would be why do we even need this? Money on gta:w isn't even that hard to get and you barely, if ever have companies that need funds from more than 2 people to start them and run them long term. What would force me, as a business/company owner to sell shares of my business when there is no costs minus the starting costs of opening a business?

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1 minute ago, DjoleK said:

My question would be why do we even need this? Money on gta:w isn't even that hard to get and you barely, if ever have companies that need funds from more than 2 people to start them and run them long term. What would force me, as a business/company owner to sell shares of my business when there is no costs minus the starting costs of opening a business?

This guy pretty much sums up why there's no need for a stock market. People use IPOs to gain money for their business, when they no longer want to loan or to invest their money. Companies on GTAW don't invest money, because there's no money to invest: employers are easy to pay, competition isn't really competition, and so on.

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Altough I do think  that a stock market would be interesting to have on the server. There are many things that should be looked into. To start off with transparency. Keeping financials from every business will be a real struggle. The government would need to make a branch for investigation and track of these business following the laws and regulations in the stock market. Aside from that, the evaluation of IPO's would be really hard without experts in the topic to evaluate these businesses at a fair price without being overpriced which will most likely be the case. I see a lot of corruption in bound if there was to be a stock market. 

 

Dividends would be another struggle due to transparency as I mentioned before. There would need to be share types and type of ways of investing into companies since not all companies offer dividends in the real stock market. The uncontrolable aftermath that it could cause on LS economy could be catastrophic, because what causes bubbles in an economy is the lack of knowledge when investing into companies. Making them grow through speculation instead of value. Without experts to control that from happening as they do in real life, it would be hard to keep a stable economy.

 

 

CHARACTERS

Harvey Busch - Active

Busch Harland Inc.

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For both of you, this doesn't work like the real world. It can't. You are not in this stock market to earn your dividends... There's no bonds nothing, the only thing that happens here is very simple. Lets say I want to be a corporation and... I have a nightclub with a pal. Now I can choose to be private and put that nightclub corporation in a private stock. Where no one buys shares or anything.

 

This stock will just be shares that sometimes they will open and sometimes there will be none because the business does not wissh to expand further. And that is where it will stay. But there might be someone who wishes to epand further and doesn't have the money to do so. In this game stock market the person would open shares and the index would put both into contact and the investor can agree with the owner to add more money to that owner's coorporation. 

 

Does this help in any way? Yes it does because it keeps companies and certain things from dissapearing. One owner might go inactive while the other one stays and develops something. It gives chance to some new players and so on.

 

Also! put it like this. I'm new and I have my 200,000. I wish to RP an investor. So I find this stock market and browse through the list. I find someone looking for investors and I can purchase some of that stock with my 200k. So I proceed to do that and then I own idk depends how many shares I bought. Now that business has two owners and lets say one leaves, the second investor has the will and is encouraged to keep the business going on and on and on... Or he can sell his stock to someone interested. 

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You're talking about companies looking for investors, not stockholders. Small businesses can't even be listed on a stock market, they don't appear there because in order to be listed you'll have to be big enough and powerful enough so people will buy your stocks, that's the whole point: big companies sell stocks because there's always people looking up to them and buying. No one is gonna invest in a small business that's almost into bankrupcy, especially for that: going bankrupt, meaning that the business cannot survive and that's the way it goes. 

 

Sorry, without a proper script to list companies to a certain stock market, to see how their sales(through script) will determine the stock price..this is just for the sake of it.

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4 minutes ago, SOCRATES said:

You're talking about companies looking for investors, not stockholders. Small businesses can't even be listed on a stock market, they don't appear there because in order to be listed you'll have to be big enough and powerful enough so people will buy your stocks, that's the whole point: big companies sell stocks because there's always people looking up to them and buying. No one is gonna invest in a small business that's almost into bankrupcy, especially for that: going bankrupt, meaning that the business cannot survive and that's the way it goes. 

 

Sorry, without a proper script to list companies to a certain stock market, to see how their sales(through script) will determine the stock price..this is just for the sake of it.

Even with a proper script this wouldn't work unless you scripted gas, energy, and water companies(GOV involvement) to be involved into that. This idea I'm talking about would only be a stock exchange for corporations in LS.

 

The economy the server has can't supoort a real stock market. But it can provide a simple, basic stock exchange.

Edited by Chuck Lee
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6 minutes ago, SOCRATES said:

You're talking about companies looking for investors, not stockholders. Small businesses can't even be listed on a stock market, they don't appear there because in order to be listed you'll have to be big enough and powerful enough so people will buy your stocks, that's the whole point: big companies sell stocks because there's always people looking up to them and buying. No one is gonna invest in a small business that's almost into bankrupcy, especially for that: going bankrupt, meaning that the business cannot survive and that's the way it goes. 

 

Sorry, without a proper script to list companies to a certain stock market, to see how their sales(through script) will determine the stock price..this is just for the sake of it.

I do agree to an extent with you about a script for people to have the plain view of the statistics. The way to make that possible will be a real struggle for any type of developer and expert on the subject. This server has many more things to worry about before making such a move on the way their economy works. The money that will be made here will be basically off speculation instead of value. Some prices will sky rocket due to ignorance of the general population of the server in this topic. Which brings a bubble as I mentioned before. This creating another way of economic growth, and perhaps uncontrollable to an extent, creating changes that the admins will not be in control of. Right now, they have the  power to make minor and simple adjustments if things get out of hand. A stock market will be a difficult pet to handle.  The government is not ready to battle with those economic problems. And I am sure we dont have enough people to make such a drastic move happen in the short to medium run.

 

CHARACTERS

Harvey Busch - Active

Busch Harland Inc.

Edited by AIR
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